The Slovenia Times

EBRD Sees 1.1% Contraction


The EBRD reduced its 2012 economic growth forecast for the entire central and south-eastern Europe, eastern Europe and the Caucasus by 0.1 percentage points to 3.1%.

But the bank's Regional Economic Prospects report, singles out Slovenia and Hungary as countries that are likely to see a return to recession in 2012.

Slovenia is forecast to see a 1.1% drop in its GDP this year after recording an estimated 0.4% growth in 2011 (down from 1% in the October forecast).

A 1.5% contraction is forecast for Hungary for this year.

The report notes that central and south-eastern Europe is particularly exposed to stress that could result from a further deterioration of conditions in the eurozone.

The report revised the 2012 forecasts for central Europe and the Baltic states down to 1.4% from the 1.7% last October and those for south-eastern Europe have been revised down by 0.6 percentage points to 1%.


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